Stakeholders meet to discuss ease of doing business |19 September 2017

The government and the private sector yesterday got together informally to engage in high level discussions and find solutions to improve the ease of doing business in Seychelles.

This took place through a breakfast meeting organised by the Seychelles Chamber of Commerce and Industry (SCCI) in collaboration with the Ministry of Industry, Entrepreneurship Development and Business Innovation.

The meeting, held at the Savoy Resort & Spa, was attended by the Minister for Industry, Entrepreneurship Development and Business Innovation Wallace Cosgrow and his delegation, the acting chairman of SCCI Oliver Bastienne and delegation, representatives from the Small Enterprise Promotion Agency (Senpa), the Association of Young Entrepreneurs and other stakeholders in the micro, small, medium and large enterprises.

Over the first SCCI breakfast meeting, acting chairman Bastienne said even though the current Fitch Rating shows that the overall economic outlook for Seychelles looks stable as good progress has been made along with good servicing of our debt, “unfortunately minister, the ease of doing business indicators show worrying signs. If I can put some stats for you minister, starting a business, 137 out of 190, getting credit 118 out of 190, dealing with construction permits 146 out of 190, minister it shows a worrying trend”, as he added that the SCCI does recognise the hard work the ministry has been doing in terms of formulating policies as SCCI was involved in its formulation.

“Minister, focus for the 2018 budget should be on growth oriented policies and kind of infrastructural development and capital out leads that would generate economic activities that would create employment, improve living standards and benefit our nation as a whole,” he said.

He added it is hoped to see SCCI’s input in the 2018 budget and that both the business sector and government should work collaboratively together to create a thriving business environment.

Leading the new ministry for the past two months, Minister Cosgrow said as policy makers they always seek the views of stakeholders in the business and the meeting was an opportunity for his ministry to get views on the business situation out there that will help in formulating better policies.

The half-day meeting was very frank as delegates who spoke voiced their frustrations on obstacles and barriers affecting the ease of doing business in Seychelles.

Some of these obstacles are access to credit and financing, high utility cost, high labour cost, taxes, levy charges, constraints with technicians over decision making, inconsistency in policies, lack of mentorship to young entrepreneurs, recognition for being an entrepreneur among other issues.  

There was also a proposal to re-instate a steering committee that can meet regularly to address business issues between government and the business sector.

Among those who spoke was young entrepreneur Jean Paul Toulon who gave an overview of his experience as a young entrepreneur since leaving the School of Business Studies and Accounting. He said young entrepreneurs like himself need encouragement to move forward as most of them feel alone when starting a business and that prompts most of them to give up as they don’t have the drive to move forward.

Minister Cosgrow intervened on the need for consultations on the ease of doing business with all stakeholders and agreed on the need for a steering committee to push things forward as there is a need to bring other representatives from other related ministries and to collaborate to make things happen. He added that the business policy is being revised in consideration of inputs by all stakeholders.

Part of the policy will be based on the SADC and Comesa industrial policy as Seychelles forms part of these organisations, he stated.

Minister Cosgrow also said Senpa will become Enterprise Seychelles (ES) next year and will manage all SMEs and will give better advice and guidance.

He said the simpler formula to pay taxes is being designed and the rebalancing for electricity tariff for businesses and private use is also on the table.

He assured that all other issues discussed relating to other ministries will be forwarded to them for action.

Tony Souffe, who owns a small printing business at La Batie, said it was surprising to hear the frustrations of the different businesses.

“All things have a solution. There will always be barriers and the way I see it one has to either accept the way things are at the moment or back out and do something else. We should all hold hands and support one another to move forward,” he said.

Joachim Hoareau, who runs a stained glass business at Bel Air, said the meeting was very fruitful.

“I hope with all the problems that exist in the business environment, the minister and his delegation will take it seriously so that things will move especially for small businesses who are trying to move forward,” he said.

Principal secretary Roger Toussaint agreed that the ease of doing business is at its lowest with the same issues being voiced out by businessmen from Mahé, Praslin and La Digue.

“We will try our utmost best to improve the ease of doing business. Over the years it had not got better, in fact it has deteriorated.  We at the ministry along with the Ministry of Finance are working on a finance policy and an SME scheme so as to better the condition for people in business to get access to finance. We also want to get the banks to participate which will make things easier for businesses,” he said.   

Mr Bastienne was very satisfied with the meeting and hoped that all points raised will be looked into.